PROJECT PROPOSAL: IMPROVING PROJECT PROPOSAL: IMPROVING QUALITY OF PRODUCTSQUALITY OF PRODUCTS

AWANG AZMAN BIN AWANG RADIN

MASTER IN MANAGEMENT

AEU

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INTRODUCTIONINTRODUCTIONIt will try to ensure that all the

products arrived to the customer in good condition and within the specifications agreed upon the procurement process.

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Background – the Background – the company company

Strategic Teknik Sdn. Bhd., was set up to deal with pneumatic, hydraulic , gas hydraulic or electric valve actuators & control systems, level controls with magnetic level gauges & various level transmitters, fluid power components, sand pig and corrosion monitoring systems and a variety of quality instrumentation.

They have expanded their service capability by opening offices in East and West Malaysia.

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Background – the Background – the company company • Exclusive Distributorship• Strategic Teknik holds the exclusive

distributorship for Malaysia for the following: Bettis/Emerson Actuators and Controls, Shafer Hydraulic Actuator & HPU, K-Tek Corporation Level Instruments, ClampOn Sand & Pig Monitoring Sensors, Versa Products Co. Inc Solenoid and pilot instrumentation Valves, Westlock Controls Position Monitors, Rupture Pin Safety Relief valves, Deltrol Fluid Product Inc., Triangle Cable, EIM Control Electric Actuators, Eesiflo Ultrasonic flow meters and water in crude meters, Mercer Safety Relief Valves, and Duxvalves Control Valves.

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Problem statementProblem statement• Faulty and low quality product

can weakened the profitability of a product and the profitability of the company.

• This was assessed by the estimation from the returns of the products, from claims, from repairs under warranty and from decrease in the value of the treadmark.

• 2010, Miri Branch – 10 % of Actuators and Controls were return back, 5% need to be repaired under warranty

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Problem statementProblem statement

• The quality of a product and the processes closely related to its production and delivery. It can be improved by improving the traceability of the order-delivery process and the traceability of and individual product

• To carry out the tracking of the order-procurement- production-delivery process is difficult with current information system, mainly because the integration of information in several section of supply chain within this company is difficult because each part of the company had it own system

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e.g FORD COMPANY: REPORTS 2010 FULL YEAR e.g FORD COMPANY: REPORTS 2010 FULL YEAR NET INCOME OF $6.6 BILLION; FOURTH QUARTER NET INCOME OF $6.6 BILLION; FOURTH QUARTER

NET INCOME OF $190 MILLION+NET INCOME OF $190 MILLION+

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Propose SystemPropose SystemTo introduce an integration of

information processing system

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ObjectiveObjective• To improve the quality of product

delivered to the clients/customers• Sub-objectives:• To reduce the percentage of return

back products to < 5% from total deliveries in a certain period of time

• To reduce the percentage of under warranty repair to <1% from total product deliveries in a certain period of time

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MethodologyMethodology• Project will be implemented in Jan 2013

and expect to be completed in 1 year period

• Project will be participated by all agencies related in the order – delivery process (SUPPLY CHAIN) of the specific product

• Data need to be collected:– The design documentation and specification – Certification of the material used, cast lot,

cast number, heat treating and the results from the pressure test on the finished products

• The collected data need to be connect into a unified totality (data mining and data warehousing)

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Limitations/ConstraintsLimitations/ConstraintsParticipation and coordination

from other related agencies/company

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CostingCostingTraining – RM 5,000.00IT equipments and soft ware –

RM 50,000.00Man power – existing staff

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ConclusionConclusion

Through implementing proper integration of information processing system into this company it will reduce the number of faulty and low quality product delivered to their clients

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